Union Cabinet Approves Rs 10,700 Crore for FCI and Launches PM Vidyalaxmi Scheme
The Union Cabinet has decided to provide Rs 10,700 crore to the Food Corporation of India (FCI) for the financial year 2024-25. This move aims to support the agricultural sector and benefit farmers across India. FCI, which began in 1964, has seen its authorized capital grow significantly, reaching Rs 21,000 crores in 2023. The new equity will help FCI financially, enhancing its role in food security by procuring food grains, maintaining stocks, and stabilizing prices.
Additionally, the Cabinet has introduced the PM Vidyalaxmi scheme to assist middle-class students facing financial challenges in pursuing higher education. The scheme will cover up to one lakh students annually, offering collateral-free and guarantor-free loans. Students with a family income of up to Rs 8 lakh can receive a three percent interest subvention on loans up to Rs 10 lakh. Loans up to Rs 7.5 lakh will have a 75 percent credit guarantee on outstanding defaults.
Doubts Revealed
Union Cabinet -: The Union Cabinet is a group of top government officials in India, including the Prime Minister and other important ministers, who make key decisions for the country.
Rs 10,700 Crore -: Rs 10,700 Crore is a large amount of money, where ‘Rs’ stands for Indian Rupees, and ‘Crore’ is a unit in the Indian numbering system equal to ten million. So, Rs 10,700 Crore is 107 billion rupees.
FCI -: FCI stands for the Food Corporation of India, which is an organization that helps make sure there is enough food for everyone in India by storing and distributing food grains.
PM Vidyalaxmi Scheme -: The PM Vidyalaxmi Scheme is a new program started by the Indian government to help middle-class students who need money to study further. It provides loans without needing to give something as security, and the government helps with the interest.
Interest Subvention -: Interest subvention means the government helps pay part of the interest on a loan, making it cheaper for the person who borrowed the money.
Collateral-free loans -: Collateral-free loans are loans where you don’t have to give something valuable, like property or gold, to the bank as a guarantee that you will pay back the money.
